The Telecom Council of Silicon Valley Executive Forum Predictions for 2015

1. MATRIXX Software
Predictions:
Alternative Business
Models for Telcos
Vineet Sachdev
VP, Product Management
Executive Forum Predictions for 2015,
Santa Clara, 16 January 2015

2. Traditional Telco Business Under Pressure
Moody’s Negative outlook for EMEA Telcos for the next 12-18 months
Infonetics Europe's 5 largest Telcos continue to experience declining
revenue
Ovum Telcos will lose $386 billion (2012-2018) from customers using
OTT VoIP
Telefonica Market cap down from $122 to $61 billion in 5 years
Juniper
Research
Margins for 12 international Telcos have fallen by 6.4% over a 3
year period
2TCSV EXECUTIVE FORUM: PREDICTIONS 2015

3. Prediction M: M2M
• 50 billion smart objects by 2020
• Telco revenues from M2M will be $25B in 2018
• Revenue opportunities with large enterprises (auto, utility, home automation
etc.)
• Upsell opportunities to consumers
– Enable shared data for the connected car
3
Explosive growth in M2M will provide new revenue opportunities
TCSV EXECUTIVE FORUM: PREDICTIONS 2015

4. Prediction A: Application-aware Pricing
4
• DSPs will stop treating “all” traffic alike
• A variety of new ways to provide differentiated pricing based on application
type and subscriber preference
– Subscription-rate certain traffic (such as music streaming)
– Day packs for popular applications (Facebook, Whatsapp, YouTube)
– Great data on-boarding strategy for pre-paid voice-only consumers
Innovative application-based pricing offers will augment the
current all-you-can-eat models
TCSV EXECUTIVE FORUM: PREDICTIONS 2015

5. Prediction R: Roaming
5
• Roaming revenues will reach $90B by 2018 ($42B in data roaming)
• 2014 roaming revenues were $57B – hence, significant growth potential
• DSPs will offer new easy-to-understand bundles to promote international
roaming
– $5 a day to carry domestic voice/data/SMS bundle
– X free roaming days per year
Offer innovative roaming packages to promote “always-
connected” model while traveling
TCSV EXECUTIVE FORUM: PREDICTIONS 2015

6. Prediction S: Sponsored Content
6
• DSPs will learn to make additional money by co-existing with the OTT
providers
– Amazon
– Streaming music/video
– Social media
• OTT providers will give new threat to Telcos by providing direct connectivity
– Walmart/Target/Amazon
– Facebook pre-paid cards
– Apple/Microsoft SIM
Sponsored content will gain momentum and provide new revenue
streams for Telcos
TCSV EXECUTIVE FORUM: PREDICTIONS 2015

7. 7
M2M
Application-aware Pricing
Roaming
Sponsored Content
M
A
R
S
Year of Continued Transformation from CSP to
DSP
TCSV EXECUTIVE FORUM: PREDICTIONS 2015

8. MATRIXX Software
Thank You